v3.25.1
Note 15 - Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Taxes

Note 15 – Taxes

Income tax expense during interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items, such as the net gain on change in fair value of debt held under the fair value option, which are recorded in the interim period. The provision for income taxes for the three months ended March 31, 2024 reflects an income tax expense of $0.1 million at an estimated annual effective tax rate of (0.4)%. There was no income tax expense at March 31, 2025. The difference between the Company’s effective tax rate and the federal statutory rate is primarily due to the valuation allowance recorded during each period. As of March 31, 2025 and December 31, 2024, the Company maintained a full valuation allowance on its deferred tax assets as the timing of the utilization of its net operating losses is uncertain. For the three months ended March 31, 2025 and 2024, the Company recorded a valuation allowance of $2.0 million and $1.7 million, respectively, against the deferred tax asset.